Until 2020 is still far away. But technologies are developing at such a speed that next year’s trends need to be thought of as early as possible. Especially if it concerns the blockchain, the possibilities of which are still not fully disclosed.
The bear market of cryptocurrencies, which blockchains often associate with, evokes the idea that this technology also loses its relevance. But we must not forget that its scope is much wider than the implementation of transactions.
When people say “blockchain” to me, I think about explosive innovations, improving production, increasing security. Indeed, many industries follow this trend, marking their assets to ensure secure decentralized data processing.
Why is blockchain in trend?
Industrial revolution is seen in the implementation of artificial intelligence. It really is. AI is the most extensive and unique phenomenon of our time. But this is not the only source of radical change. The blockchain is having more and more influence.
This technology has already passed the test of time. It is trusted by more and more organizations. It is increasingly integrated into different systems. Secure user identification, smart contracts, secure registry, smart storage, decentralization - this is not a complete list of benefits.
The blockchain helped save a ton of resources that went into ensuring the protection and effectiveness of an enterprise or service. Thus, it raised both the global GDP and the individual development of each organization.
Raising capital is one of the most used features of the blockchain today. Distributed registry allows you to conduct transactions safely and in seconds. This is what big business needs, where millions depend on every second.
Data collection and storage is another process that is increasingly carried out using the blockchain. The decentralized network makes it possible to exchange information without additional requests. At the same time, information security is increased, but not reduced.
The blockchain is the foundation of all the services, transactions, markets and ecosystems that define today's existence. What to expect from its implementation in 2020?
In recent years, we have seen many new projects based on the blockchain. Some are related to cryptocurrencies, others simply use this technology to increase security. But they all share the success of the market.
2020 will radically change direction. An ordinary start-up with the use of the blockchain will not be able to get as high support as it happened before. Why? Lack of uniqueness.
Today you can see how some start-ups repeat similar projects during the implementation of the blockchain. Thus, they create another alternative, rather than something conceptually new.
Specialists and large companies are aimed precisely at finding new opportunities for blockchain deployment. Therefore, they will do nothing except observation. So it will last until the best use of this technology appears. What it will be is a big mystery.
Implementation in the financial system
The banking industry is somewhat different from traditional enterprises. While everyone is looking for radical changes, everything is ready for making payments. The financial system does not need new approaches. For it, the blockchain has been studied comprehensively thanks to cryptocurrencies.
Now banks are thinking about something else: how to implement a blockchain globally? Modern query processing speed is not enough. The same Swift copes within three days. A few years ago it was overwhelming. Today you need to achieve a result in a few hours, or even - seconds.
One example is the Ripple network, which products are used by about 40 banks, including such as MUFG and Standard Chartered. In 2016, ReiseBank demonstrated the capabilities of the blockchain through RippleNet. A $ 1000 transaction was completed in 20 seconds.
But Ripple is not so good. Many are unhappy with the partial centralization of this network. The alternative is Stellar, which ensures complete anonymity of transactions. But the main drawback is binding to cryptocurrency. All banks of the world are afraid of this.
Any cryptocurrency is very unstable. Therefore, in a bank transfer, one of the parties may suffer losses due to a sharp jump in the exchange rate. Thus, the banking industry is focused on the independent implementation of the blockchain without being tied to any digital coin.
The development of national cryptocurrency
80% of countries are concerned about the popularity of uncontrolled financial assets. Someone will say that you can simply legally determine their status and introduce criminal penalties for any use. This has already been done by China, banning any circulation of cryptocurrency within the country.
As mentioned above, transfers via the bank are significantly inferior to cryptocurrencies. Therefore, any person who is aware of the benefits of digital money will respond to such a ban by requiring the government to introduce a legal alternative.
I can not say that the whole world in one instant will switch to currencies based on the blockchain. But 2020 will be the starting point for the development of national cryptocurrency. Perhaps their value and names will completely coincide with real money now. But the blockchain will lead the world away from payment cards, and even more so from cash.
Venezuela has become one such example. They did as described above. Any cryptocurrency is prohibited in the country, except for one – Petromoneda, the national cryptocurrency. For now, it can only be calculated inside Venezuela, but it is expected to enter the world market.
In this case, the trend is not new. The United States, Japan, Denmark and even Estonia practice blockchain implementation in government agencies. In 2020, this trend will get a wider coverage.
Administrations, services and ministries have to process huge amounts of data every day. One of the principles of any state system is interaction between the authorities.
Today it is implemented with difficulty, since each body has its own separate database. Thus, each employee spends time sending and processing requests for information. The introduction of a distributed registry will greatly simplify this procedure.
Blockchain is part of the Internet of Things
The Internet of Things is one of the most evolving trends of the 21st century. Many devices, as well as smart homes, are equipped with special sensors to synchronize any actions, regardless of the user's location.
Throughout this system also collects data on related devices. In addition, the Internet of Things implies a permanent connection to the network. This increases security requirements. Blockchain is one of the best solutions to satisfy them.
In addition to security, this technology will allow devices to make automated microtransactions. For example, a client will be able to set up an automatic payment for a trip to Uber. Due to its nature, the blockchain will conduct these transactions several times faster.
Copyright protection is rapidly evolving in all aspects. So, one can observe a significant improvement of this system in social networks. International organizations create more influence by blocking services that illegally place content. However, authors increasingly complain about the piracy of their works.
Moreover, high-quality content protection requires the signing of many contracts and mediation. That is, in addition to piracy, the authors lose a lot of money to pay for the protection of their works.
Placing content on the blockchain can ensure full automation and security of distribution processes:
- blocking illegal content download;
- increased protection against hacking;
- transfer of content only to those services (users) that have paid.
Also, thanks to the blockchain, you can provide direct payments to content owners. In this case, the owners are not labels, but performers and composers.
Continuing cryptocurrency confrontation
Many have learned about the blockchain through cryptocurrencies, as it is their foundation. As mentioned above, banks are trying to move away from the use of cryptocurrency due to the instability of the course. At the same time, states are getting closer to creating national cryptocurrencies. But the market situation forms a completely different question: what will happen to the currently existing two thousand cryptocurrencies?
Experts say that you should not expect big changes. What does it mean?
- The top of the rating will be occupied by the same projects, “fighting” among themselves in pursuit of the first place.
- Bitcoin will be stable, remaining on the first line.
- Continue speculation in order to increase activity on the stock exchanges.
New workplacesThe main fear of the technological revolution is the transition to the automation of any sphere and the reduction of jobs. On the one hand, this is true. Nevertheless, new technologies will create more new jobs, maybe even create new professions.
Working with blockchain is not only developers and programmers. They have only one thing in mind: how to set up a particular program, how to protect the network. In other words, their task is to develop the blockchain. But the market is built not only on the implementation of technology.
The blockchain integration will provoke a new interest in event organizers, will increase the requirements for project managers, add vacancies for sales professionals. In the end, every successful implementation of the blockchain is a job for journalists, writers and critics.
Of course, the blockchain will "remove" a lot of posts. But this concerns only a conservative approach to business. It’s time to develop new skills and learn new skills for many.
Blockchain is primarily a business revolution. But its integration requires a lot of time and effort. However, 2020 will improve the attitude to this technology. Finally, governments of different countries will take its advantages and start using it to improve financial and social services.
Although some start-ups will be on the verge of a foul or will fail altogether, people will gain invaluable experience using this technology. Blockchain will encourage new skills. Traditional businesses will have to completely rethink their processes.
2020 is a new starting point for innovation. One of the key roles in this will be played by the blockchain.